Multiple Choice
When Matt has an income of $2,000, he consumes 30 units of good A and 50 units of good B. After Matt's income increases to $3,000, he consumes 25 units of good A and 95 units of good B. Which of the following statements is correct?
A) Both goods A and B are normal goods.
B) Both goods A and B are inferior goods.
C) Good A is a normal good, and good B is an inferior good.
D) Good A is an inferior good, and good B is a normal good.
Correct Answer:
Verified
Correct Answer:
Verified
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